Employers with employees working in Redwood City should take steps to prepare for the new minimum wage ordinance.

Redwood City is the latest California city to adopt a local minimum wage ordinance. Beginning January 1, 2019, qualifying employees must earn at least $13.50 per hour for each hour worked within the geographic boundaries of Redwood City.

The Redwood City Minimum Wage Ordinance (MWO) will apply to all employers that maintain a business facility in Redwood City or are subject to Redwood City’s business license requirements, and covers all employees working two hours or more in a calendar week within the geographic boundaries of Redwood City.

On January 1, 2020, the Redwood City minimum wage is scheduled to increase to $15.00 per hour plus an amount corresponding to 2019’s cost of living/Consumer Price Index (CPI) increase. For example, if the cost of living increases by five percent in 2019, then on January 1, 2020, the minimum wage will be $15.00 + ($15.00 x .05), or $15.75 (Redwood City Mun. Code sec. 46.030(b)). Increases after 2020 will be based on the CPI.

Redwood City’s scheduled rates are higher than California’s scheduled minimum wage rates. The Redwood City MWO does not have lower rates or deferred increases for small employers or non-profits.

Similar to other local minimum wage ordinances, employers will have required employee notices, including a workplace poster that must be displayed in a conspicuous place at any workplace or job site where any employee works. Additionally, employers will have to keep payroll records for three years.

Employers who violate the Redwood City MWO may be subject to administrative citations, penalties and other fees. Employers with employees working in Redwood City should take steps to prepare for the new MWO, including obtaining required posters. CalChamber offers a variety of California city and county labor law posters in the CalChamber store – Redwood City’s poster coming soon!